Handyandy180

Hi peeps
Can anyone tell me if Australia run
a state pension? how do we qualify? do we still qualify for our Uk state pension once we have vacated the UK?
Good luck to all that are applying,
Regards Chris and andrea

GoodwinFS

State pensions in Australia really don't exist in the same way UK pensions do. There is a social security pension available for people unemployed or in retirement for people who are not financially able to support themselves (obviously rules apply on your financial situation and age for each). It is a minimal amount to live on and some people receive this pension plus have investment assets income to make up their retirement funding.

Our pension system like the uk is called Superannuation. It is funded by your employer paying 9% of your salary into each year. It was implemented by the government for everyone about 15 years ago to help the government fix the retirement savings shortfall. The issues are various and complex and each individual needs to be assessed separately.

Once you hit retirement (age above 55, in most cases age 60 now), you can access these superannuation funds within a web of different rules to fund your retirement. Simply put, it is a pool of money that you invest in a range of things, some risky, some secure - your choice. there are a huge range of supplers.

You draw from this pool to fund your living each year. You can add additional monies to it and it is like adding money to a bank account that just keeps growing until retirement when you start drawing.

To be eligible to start one of these funds is simply by just having a tax file number. Most people who work in Australia will need a TFN, so once you have this you can start this Superannuation account.

The reason why you would put money in this system rather than having your money invested outside is that it is taxed concessionally insuide the superannuation system.

The state pension information can be found on the link below. Know as age pension. Just do a search on the site ( can be found at the bottom of the screen).

http://www.centrelink.gov.au/

For superannuation information. See following link:

http://www.asfa.asn.au/super/rpm.cfm?page=factsheets

Go through the fact sheet, they should give you further info.

If you need any further help. Just give me a buzz.

Regards
George Caredes
[email protected]